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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">Sharon and colleagues,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">With a view toward enhancing the prospect for congressional acceptance of the transition proposal, I offered these suggestions with respect to the models under
consideration:<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">1. It's far better for the PTI to be a separate nonprofit public benefit corporation. While this approach may add to structural complexity, it underscores the
extent to which there is a clear separation between ICANN's DNS policymaking function and the performance of the IANA functions.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">2. A careful review should be undertaken of the commitments imposed on ICANN in the Affirmation of Commitments ICANN entered into with NTIA. The obligations
ICANN has undertaken in the Affirmation should be incorporated into the bylaws of ICANN, and these bylaws should not be amendable by the ICANN board without a supermajority of all board members (not just those present and voting). Senate Commerce Committee
Chairman Thune's letter to ICANN says that the ICANN board should not be in a position to terminate the Affirmation of Commitments unless more than 4/5 of the entire board votes to do so. An appropriate way to acknowledge this recommendation would be to require
a 4/5 majority of the entire board for amendments to the portions of the bylaws containing the ICANN responsibilities under the Commitments. This could also be the kind of board decision which would be subject to approval by the group of members. Please note
that one of the commitments is that ICANN will remain headquartered in the United States.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">3. The PTI board should be truly independent from the ICANN board, not ICANN board designated or controlled. It should be member group appointed, and there
should be very limited if any overlap in membership between the ICANN Board and the PTI board.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">4. The Periodic Review Team (PRT) should be chosen by an answerable to the member group. It is the main way members have of being certain the IANA functions
are being satisfactorily performed.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">Rick<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<div>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><b><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#1F497D">RICK</span></b><span style="font-size:9.0pt;font-family:"Arial","sans-serif";color:#1F497D"> </span><b><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#1F497D">BOUCHER</span></b><span style="font-size:9.0pt;font-family:"Arial","sans-serif";color:#1F497D"><br>
Partner<br>
<br>
</span><b><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#1F497D">Sidley Austin LLP</span></b><b><span style="font-size:9.0pt;font-family:"Arial","sans-serif";color:#1F497D"><br>
</span></b><span style="font-size:9.0pt;font-family:"Arial","sans-serif";color:#1F497D">+1.202.736.8290<br>
<a href="mailto:rboucher@sidley.com" title="Click to send email to Boucher, Rick">rboucher@sidley.com</a><o:p></o:p></span></p>
</div>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#1F497D"> </span><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p></o:p></span></p>
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<p class="MsoNormal" style="margin-left:.5in"><b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif"">From:</span></b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif""> Flanagan, Sharon
<br>
<b>Sent:</b> Saturday, April 04, 2015 10:51 AM<br>
<b>To:</b> 'cwg-client@icann.org'<br>
<b>Cc:</b> Grace Abuhamad; Gregory, Holly; Hofheimer, Joshua T.; Clark, Michael A.; McNicholas, Edward R.; Boucher, Rick; Kerry, Cameron; Mohan, Vivek; Hilton, Tyler; Tam, Tennie H.; Fuller, Miles<br>
<b>Subject:</b> Transition Models for Further Consideration<o:p></o:p></span></p>
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<p class="MsoNormal" style="margin-left:.5in"><o:p> </o:p></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-family:"Arial","sans-serif"">Dear All,<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-family:"Arial","sans-serif""><o:p> </o:p></span></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-family:"Arial","sans-serif"">Attached is an initial discussion draft of the two models that the CWG requested Sidley’s input on: the internal accountability/hybrid model with two closely related
variants: accountability mechanism with legal separation and accountability mechanism with functional separation. We look forward to discussing.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-family:"Arial","sans-serif""><o:p> </o:p></span></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-family:"Arial","sans-serif"">Best regards,<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-family:"Arial","sans-serif"">Sharon<o:p></o:p></span></p>
<div>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;margin-left:.5in">
<b><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#1F497D">SHARON</span></b><span style="font-size:9.0pt;font-family:"Arial","sans-serif";color:#1F497D"> </span><b><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#1F497D">FLANAGAN</span></b><span style="font-size:9.0pt;font-family:"Arial","sans-serif";color:#1F497D"><br>
Partner<br>
<br>
</span><b><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#1F497D">Sidley Austin LLP</span></b><b><span style="font-size:9.0pt;font-family:"Arial","sans-serif";color:#1F497D"><br>
</span></b><span style="font-size:9.0pt;font-family:"Arial","sans-serif";color:#1F497D">+1.415.772.1271<br>
<a href="mailto:sflanagan@sidley.com" title="Click to send email to Flanagan, Sharon">sflanagan@sidley.com</a><o:p></o:p></span></p>
</div>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#1F497D"> </span><span style="font-size:9.0pt;font-family:"Arial","sans-serif";color:#1F497D"><o:p></o:p></span></p>
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<p class="MsoNormal" style="margin-left:2.5in"><o:p> </o:p></p>
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